Yes, it’s challenging to live below your means but if you resolve to actually do so, it is possible. Here are some practical ways to get you started:
1. Don’t buy something if you cannot afford it. If you want to purchase something, look at the price tag. If you don’t have that amount to spare after all your necessary expenses have been deducted, don’t charge it to credit. You will still have to pay for it later on. Also, don’t dip money from your emergency savings fund just to be able to get it. Keep your emergency savings for real emergencies.
2. Eat and relax at home. Try tallying how much you spend for restaurant meals in a month and you’ll be shocked at the money you are throwing away. Do the same for those little knick-knacks and whatnots you buy every time you go to the mall. If you stay and cook your meals at home and watch videos or play board games together, you won’t have to spend for gas to go to the mall or buy food or other unnecessary things you see there on impulse.
Try to do this for at least a couple of weeks and then a month and you’ll realize that staying at home will help you live below your means without sacrificing the quality of your leisure time. In fact, it can even make your family closer.
3. Follow a budget. Without a spending plan, it’s going to be very difficult to live below your means because you won’t know where your dollar goes. With a budget, you allocate money where they are needed and ensure that you don’t go overboard spending in one category. Always make room for savings in your budget and automate payments if you can. This ensures that you are able to pay all your bills on time.
4. Keep yourself healthy. The healthier you are, the less you will have to spend for medical expenses like doctor’s visits and prescription medication. Sure, you have your insurance to take care of all these but you will still have to shell out for copays and drugs that are not covered in your plan. So follow an exercise regimen each day, eat right, and avoid vices that will jeopardize your health. You’ll find that living below your means is easier if you don’t have to spend so much for medical expenses.
5. Don’t buy on impulse. If you see something that you want, get out of that area and wander somewhere else. Chances are, you’ll forget that thing in an hour or less. If the thought of buying it still lingers, go home and evaluate if you truly need it. If you don’t, then don’t waste money on it.
6. Brand name products are usually more expensive. You can find better deals on non-branded items that are just as durable and/or fashionable. Knowing where to shop and what items to substitute for branded stuff enables you to save more.
7. Focus on your finances, not on the Joneses. You know where your finances stand. Constantly comparing yourself with the Joneses is not going to grow your bank account or increase the value of your investments. In fact, it’s going to do just the opposite. So set your mind to live below your means and forget everyone else.
8. Be a wise buyer. If you want to get more for your bucks, you have to know how to buy and where to buy. Use coupons to lower the cost of your grocery bills. Buy second hand items if you don’t really need it brand new. Buy in bulk the things that you are going to be using every day.
Yes, it’s challenging to live below your means. But the rewards are certainly worth it: A decent and comfortable life now and financial security for the future. Aren’t these worth all the sacrifice?
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